Memorandum of association is one of the important documents of the Company, where the constitution of the company is regulated through 5 clauses.
Authorized capital is the one of the Clauses of MOA, Capital mentioned in the Authorized capital Clause is the Maximum capital of the company up to which shares can be raised by the company throughout its life.
A company needs more funds in its life to operate well, and a major investment method in a company is share capital, so section 64 provides the method for the alteration of the capital clause of the memorandum.
Step 1–Issue a Notice of Board meeting at least 7 days before the board meeting as per the provisions of section 173 of the Companies Act, 2013.
Step-2 Hold a Board meeting and pass a Board resolution and call for an Extraordinary general meeting for approval of the alteration of the capital Clause of MOA.
Step-3 A notice of clear 21 days is to be required for calling of extraordinary General meeting of the Company as per Section 100 of the Companies Act, 2013.
Step-4 Issue an EGM Notice along with the explanatory statement as per section 102 of the Companies Cat, 2013.
Step-5 Hold the Extraordinary General meeting and Pass the Ordinary Resolution for
Step-6 File Form SH-7 with the Registrar of Companies within 30 days of passing of the ordinary resolution.
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